Young v. Morgan

Citations

• 89 Ill. 199

Syllabus

<p>1. Homestead—overplus above $1000 subject to lien. A judgment or deed of trust, as to property occupied as a homestead, is a lien, that may be enforced against the overplus of the same above the value of $1000.</p> <p>2. Deed of trust—when not extinguished by payment and release. Where a party sold land, occupied by him as a homestead, subject to a deed of trust, which was a prior lien to that of a judgment, the purchaser assuming the payment of the debt secured by the trust deed as a part of the purchase money, and the purchaser paid the same, taking a release of the trust deed instead of an assignment thereof, and thereupon the homestead was set off and the residue of the land sold under execution issued on the judgment, it was held, that in equity the lien of the trust deed was not extinguished in favor of the judgment creditor, but that the purchaser was entitled to assert the same for his own protection and have the sale on execution set aside.</p> <p>3. Subrogation—to lien of creditor by payment. A mere stranger or volunteer can not, by paying a debt for which another is bound; be subrogated to the creditor’s rights in respect to the security given by the real debtor, but if the person who pays the debt is compelled to do so, for the protection of his own interests and rights, then the substitution should be made.</p> <p>4. Where a purchaser of land pays off a debt of his grantor secured by a trust deed upon the premises, as a part of the purchase money, and to protect his title from sale, the payment is nota voluntary payment by a stranger, and he will be subrogated to the lien of the deed of trust, although formally released, so as to cast off an intervening lien of a judgment against his grantor.</p>